UNDERLYING TRENDS IN EMPLOYMENTOUTPUT EQUATION: THE CASE OF JORDAN

The underlying employment trend (UET) is investigated in Jordanian economy over the period 1989- 2004 using structural time series model (STSM). This approach allows to modelling the trend in its stochastic form introduced by Harvey (1989). The results show that a stochastic trend is preferred to deterministic trend. In addition, the inclusion or exclusion of the conventional deterministic trend leads to overestimated output elasticity. Furthermore, the UET is found to be non-linear, down downward sloping.

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Year of publication:	2009
Authors:	AL-RABBAIE, ARQAM ; ALWAKED, AHMAD A. ; ALTARAWNEH, YASEEN
Published in:	Perspectives of Innovation in Economics and Business (PIEB). - Prague Development Center (PRADEC). - Vol. 3.2009, 3, p. 35-37
Publisher:	Prague Development Center (PRADEC)
Subject:	Employment \| stochastic trend \| structural time series modelling

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Extent:	application/pdf text/html
Type of publication:	Article
Classification:	J20 - Time Allocation; Work Behavior; Employment Determination and Creation. General
Source:	RePEc - Research Papers in Economics

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